griculture in Latin America and the Caribbean: Context, Evolution and Current Situation | 15

Table 1-4. Gini coefficient of the income distribution around the years 1999, 2002 and 2005. Source: CEPAL 2006
based on special tabulation of the household surveys in each country.

Inequality level Around 1999 Around 2002 Around 2005
Very High
0.580–1
Brazil 0.640
Bolivia 0.586
Nicaragua 0.584
Brazil 0.639
Bolivia 0.614
Honduras 0.588
Brazil 0.613
Honduras 0.587
Colombia 0.584
High
0.520–0.579
Colombia 0.572
Paraguay 0.565
Honduras 0.564
Chile 0.560
Guatemala 0.560
Dominican Rep. 0.554
Peru 0.545
Argentinab 0.539
México 0.539
Ecuadorb 0.521
Nicaragua 0.579
Argentinab 0.578
Paraguay 0.570
Colombia 0.569
Chile 0.559
Dominican Rep. 0.544
Guatemala 0.542
El Salvador 0.525
Peru 0.525
Nicaragua (2001) 0.579
Dominican Rep. 0.569
Chile 0.550
Guatemala (2002) 0.542
Paraguay 0.536
México 0.528
Argentinab 0.526
Medium
0.470–0.519
El Salvador 0.518
Panamab 0.513
Venez. (Rep. Bol.) 0.498
Costa Rica 0.473
Panamab 0.515
México 0.514
Ecuadorb 0.513
Venez. (Rep. Bol.) 0.500
Costa Rica 0.488
Ecuadorb 0.513
Peru 0.505
Panamab 0.500
El Salvador 0.493
Venez. (Rep. Bol.) 0.490
Costa Rica 0.470
Low
0–0.469
Uruguayb 0.440
Uruguayb 0.455
Uruguayb 0.451

a The limit values of each category of the Gini coefficient are the same employed in chapter I of CEPAL, 2004.

b Urban areas.

In rural areas in particular, a very small percentage of the poor complete their secondary studies (UNDP, 2005a). In addition to the supply factors (availability of schools and quality of teaching), this may also reflect demand factors: with adolescents who work on the farm, or as wage-earning employees, the opportunity cost of sending them to school— without considering the costs of schooling and of room and board for those who must live in the town—is considerably greater than in urban areas.

 

On average, illiteracy in rural areas is two to six times greater than in urban areas and on average rural dwellers have three fewer years of schooling than urban dwellers. If one divides schooling into primary and secondary, it is clear that the difference is not so great at the primary level; nonetheless, the situation is completely different for the secondary level and the percentages are even lower in poor rural areas (World Bank, 1992; Psacharopoulos, 1993).

 

Table 1-5. Evolution of urban and rural poverty in Latin America and the Caribbean (Absolute and relative numbers).

Poor Population
Years
1970
1980
1986
1990
1994
1997
Total
119,800
135,900
170,200
200,200
201,500
204,000
Urban
44,200
62,900
94,400
121,700
125,900
125,800
Rural
75,600
73,000
75,800
78,500
75,600
78,200
Urbanization of poverty
(percentage)
36.9
46.3
55.5
60.8
62.5
61.7
Percent of poor households
Total households
45
35
-
41
38
36
Urban Area (a)
29
25
-
35
32
30
Rural Area (b)
67
54
-
58
56
54
Rural/Urban relation (b/a)
2.3
2.2
-
1.6
1.7
1.8

Note: percent of poor households (100: Total households according to area of residence).

Source: CEPAL, 1994b, 1999.